The provision of up to €2.6 million loan financing to Varus DOOEL, a distributor of pharmaceutical and chemical products, in two tranches to support the company's investment plan.
The EBRD's proceeds will be used for the construction of the new logistic/warehousing centre and upgrade of the existing facility for expanding the production capacities and a new ERP system, to support the Company's growth and expanson.
ETI score: 60
The DFF SME framework primarily targets the Competitive quality by helping SMEs restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as a secondary objective. This project is supporting framework objectives by supporting an SME in the following areas: Competitive and Green.
Varus DOOEL established in 1990, is an exclusive distributor of Merck's pharmaceutical and chemical products for North Macedonia and Kosovo.
EBRD Finance Summary
A senior loan of up to €2.6 million provided to the Borrower in two tranches.
Total Project Cost
Total Project Cost is €2.6 million.
The EBRD is additional due to its ability to support the client with expertise in the area of energy and resource efficiency. It will help the company in setting high operational standards and obtaining relevant certifications. The Bank is also additional because of its ability to support the incrase of the client's knowledge capacity through various advisory programmes. It will provide mitigation to the non-financial risk in support of the company's growth and expansion.
Environmental and Social Summary
Categorised B (2019). Low-Medium Risk for financing of a new pharmaceuticals warehouse facility in an industrial zone north of Skopje. The environmental and social impacts associated with the Project are site-specific and can be addressed via an ESAP implementation.
Technical Cooperation and Grant Financing
The EBRD has supported Varus with few advisory projects, including the assistance in the production and business development. The Bank will also be assisting the Company in further development through the Blue Ribbon Program that would addresses several aspects of Varus operations including the production efficiency and product quality improvement, business development, marketing operation and organisational development.
Company Contact Information
Skupi No. 57, 1000 Skopje
PSD last updated
16 Nov 2021
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.